Dealing With The Coming Tax Deadline
April 15th. Is there a day that makes American groan more? Yep, it is the annual tax filing deadline. Oh, the fun. If you have been procrastinating on your return, here is what you need to know.
First and foremost, you have a couple extra days to file this year. The usual April 15th deadline falls on a Saturday this year. As a result, the tax filing deadline is now the following Monday, April 17th.
Last minute filers tend to fall into two categories. They either knuckle down and get it over with or throw up their hands and file an extension for more time. Form 4868 is the filing you need to make if you want to extend.
To the surprise of many, the IRS has a pretty lax attitude towards April 15th. It gives extensions without a problem. In fact, just filing form 4868 will get you an automatic extension until October to get your return in.
While the IRS is pretty liberal when it comes to filing returns, the agency has a different attitude towards payments. Yes, you can have more time to file the return, but you better pay whatever you owe now or you will pay penalties and interest. Send in money with the extension.
One of the truly wonderful things about tax time is a catch-22 that can occur. You go ahead and get your return prepared and ready to be filed. Unfortunately, you realize you owe more than you can pay. Now what?
If this occurs, your first option is the Ostrich strategy. You can just stick your head in the sand and not file until you have enough money to pay the bill. The problem, of course, is the IRS is going to notice. You will also pay more in penalties and interest.
Not filing a tax return sends up red flags at the IRS. To avoid this, you should file regardless of whether you can cover the amount due. Send in your return as well as the amount you can pay. The IRS will then set you up on a payment plan.
Filing even if you can't pay is smart for a few reasons. First, you don't send up red flags at the IRS. Second, you will ultimately pay less then not filing. You will still pay penalties and interest on what you owe, but the amount will be less because you made at least a partial payment.
Assuming you are ready to file and have the money, how do you go about actually making payment? Most just send in a check made out to the United States Treasury. The IRS now also allows credit card payments. Visit the agency online to find an approved vendor.
Tax refunds are beautiful things. Of course, you never know if you are due one until you figure out your return. If you are, you can apply it to next year's taxes or get it back. To check on the status of your refund check, visit the IRS site to get a real time report.
I proudly admit to being a procrastinator. If you are like me, D-Day is here. Perhaps we should call it T-Day.
Get help with back taxes at BusinessTaxRecovery.com.
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